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Shelly Palmer

Shelly Palmer

Posted: November 4, 2008 09:31 AM

Google, Yahoo Revise Search Deal: MediaBytes With Shelly Palmer


Google and Yahoo will narrow the focus of their search ads deal in order to win approval from the Department of Justice. The revised plans have a two-year limit on the deal, which was expected to last ten, while revenue Yahoo can earn from Google ads place next to search queries has been capped at 25%. Under the original deal, Yahoo could have used as many Google ads on their search page as it wanted.

FCC chairman Kevin Martin canceled a vote on whether or not to revamp the system in which phone companies pay each other to transfer calls. After Martin canceled the vote, four commissioners criticized his decision. Analysts believe the proposed plan would have meant millions of dollars in increased revenue for large communications companies and would have seriously damaged small to midsize carriers.

Viacom earnings barely beat expectations for the third quarter but net income was down 37% compared with last years 3Q, which included profits from the megahit Transformers. CEO Phillipe Dauman noted that the media conglomerate was feeling the effects of weak ad budgets from the auto, beverage and gaming industries.

Brightcove is getting rid of its free, ad supported hosting service. The company is also shutting down its Brightcove.Tv site, which acts as a gallery for videos. Brightcove, which makes 99% of its money from corporate subscription clients like WSJ and HBO, said free, ad supported hosting didn't generate enough revenue to keep the service going.

Plus, today's consulting question, "What is P4P and does it work?" Shelly has the answer on today's MediaBytes.

Shelly Palmer is a consultant and the host of MediaBytes a daily show featuring news you can use about technology, media & entertainment. He is Managing Director of Advanced Media Ventures Group LLC and the author of Television Disrupted: The Transition from Network to Networked TV (2008, York House Press). Shelly is also President of the National Academy of Television Arts & Sciences, NY (the organization that bestows the coveted Emmy® Awards). You can join the MediaBytes mailing list here. Shelly can be reached at shelly@palmer.net

Follow Shelly Palmer on Twitter: www.twitter.com/@shelly_palmer